BANKS' HELP.

Auckland Star, Volume LXIII, Issue 310, 31 December 1932, Page 7

BANKS' HELP.

"UTMOST RESOURCES. ,,

FOR SOUND PURPOSES.

HOPE OP DEBT AGREEMENT.

(By Telegraph.—Special to " Star.*)

WELLING TON , , this day.

In responding to an invitation to express an opinion on the prospects of the New Year, Mr. J. T. Grose, general manager of the Bank of New Zealand, who is also chairman of the Associated Banks, concluded his survey with, a suggestion for greater team work, in co-operation with the Government, to overcome the difficulties of the times.

"The year 1932 has been a very difficult one for the Dominion," he said, "and it seems as if the earlier part of 1933 will be more difficult still, but, while this may be so, it does seem that an adjustment between Europe and the United States in respect to war debte is likely to be effected before long. Possibly it may emerge after . President Roosevelt takes office, and after the world economic conference has been held in London. The readjustment of war debts should lead to a reduction in tariffs and that, in turn, to long-term credits between some of the nations, with, increased internal and external trade following, and thus a return to happier conditions. "But," said Mr. Grose, "carefulness in spending, that is, spending -wisely and getting fair value in return is essential. Hoarding of money will do much. harm. "A reasonable reduction in costs must be sought. "Possibly temporary subsidies may be wise in some directions. New Zealand and other nations have already used them. Financing the Government. "In banking," remarked Mr. Grose, ' "the load of carrying on those who need it and are -working -wisely and to the full is very onerous, but it has been borne, and will be borne to the utmost. Then, too, Government finance calls for substantial sums, though it must be eaid that this load has not eo far been as heavy as was anticipated. Nevertheless, it is an added strain on the banke, which earn probably not more than 1 per cent a year on moneys advanced to the Government. The cause of this is the note tax and the extremely high rate of income tax which is levied on a fictitious income, from which bad debts actually written off—and these are inescapable, to some extent, to-day, because of carrying on worth-while customers —are not allowed to be deducted from assessable income.' "I am sure," commented Mr. Grose, "that it may be accepted definitely that the banks will continue to assist the Government and the people of the Dominion to the utmost of their resources, provided the assistance required is for sound and approved! purposes, particularly for reproductive purposes. "In the past the early settlers of New Zealand experienced difficulties that were almost overwhelming, but they got through by their own efforts, and I feel that by "wise, economical and careful spending, and by hard work, we, also, will overcome the difficulties now facing us. There are signs that the -way of world , betterment will appear before long." Advisory Committee Suggested. Asked if he cared to indicate any measure which would help to facilitate the task of the Cabinet within the next few weeks, Mr. Grose said that the Government was faced with a difficult and perplexing , problem. "Criticism must aim at being helpful and not carping or destructive. Possibly the Government could help themselves to the greatest advantage by appointing an advisory financial committee of five carefully selected individuals, who should include the Secretary to tho Treasury, the Government auditor, one economist and two level-headed, sound business men."